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Russia owes Western banks $120 billion. They won’t get it back

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Russia owes Western banks 0 billion. They won’t get it back

The Wall Avenue big stated Thursday that it’s “winding down its enterprise in Russia in compliance with regulatory and licensing necessities,” a Goldman Sachs spokesperson stated.

The departure follows a scramble by Western banks to tally their publicity to Russia after President Vladimir Putin ordered the invasion of Ukraine, triggering punishing sanctions that cowl many of the nation’s monetary system, together with its central financial institution and high business lenders — VTB and Sberbank.

It additionally comes after a stampede of Western companies out of nearly each different sector of Russia’s economic system, and as scores businesses warn {that a} Russian debt default is imminent.

Worldwide banks are owed greater than $121 billion by Russian entities, in accordance with the Financial institution for Worldwide Settlements, which suspended Russia’s membership on Thursday. European banks have over $84 billion whole claims, with France, Italy and Austria probably the most uncovered, and US banks owed $14.7 billion.

Goldman Sachs (GS) earlier disclosed that it had credit score publicity to Russia of $650 million in December 2021.

Different banks with extra to lose may quickly observe Goldman Sachs out of Russia. Kremlin spokesperson Dmitry Peskov stated Thursday that the financial scenario in Russia is “completely unprecedented” and blamed the West for an “financial warfare.” Moscow has pledged to retaliate for the sanctions, and a few banks have recommended that their property could possibly be seized or nationalized by the Kremlin.

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Fitch Scores warned beforehand that “massive western European banks’ asset high quality shall be pressured by the fallout from Russia’s invasion of Ukraine,” and that their operations additionally face elevated threat as they race to adjust to worldwide sanctions.

French financial institution Societe Generale (SCGLF) stated final week it’s “rigorously complying with all relevant legal guidelines and rules and is diligently implementing the measures essential to strictly implement worldwide sanctions as quickly as they’re made public.”

The financial institution stated it had nearly $21 billion in publicity to Russia on the finish of final 12 months.

Societe Generale “has greater than sufficient buffer to soak up the implications of a possible excessive state of affairs, through which the group can be stripped of property rights to its banking property in Russia,” it stated.

France’s BNP Paribas (BNPQF) stated on Wednesday that its publicity to each Russia and Ukraine totals €3 billion ($3.3 billion).
Italy’s UniCredit (UNCFF), which has been working in Russia since 1989, stated final week that its Russian arm was “very liquid and self-funded,” and that the franchise accounts for simply 3% of the financial institution’s income. On Tuesday, it stated that its publicity to Russia totals roughly €7.4 billion ($8.1 billion).
Credit score Suisse (CS) stated Thursday that it has publicity to Russia of 1 billion Swiss francs ($1.1 billion).
Deutsche Financial institution (DB) stated in a press release on Wednesday that it has “restricted” publicity to Russia, with gross mortgage publicity of €1.4 billion ($1.5 billion). The German lender stated it has considerably lowered its publicity to Russia since 2014, with additional motion taken over the previous two weeks.
US banks may really feel ache, too. Citigroup (C) disclosed final week that it had roughly $10 billion in whole publicity to Russia.

Mark Mason, the financial institution’s chief monetary officer, instructed buyers that the financial institution has been performing exams to guage the implications “below totally different stress sort of eventualities.” He stated the financial institution may lose roughly half its publicity in a “extreme” state of affairs.

Citi stated Wednesday that it could follow its plan of exiting its client banking enterprise — however it may be very onerous to discover a purchaser given the political and financial local weather.

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“As we work towards that exit, we’re working that enterprise on a extra restricted foundation given present circumstances and obligations,” it stated in a press release. “With the Russian economic system within the technique of being disconnected from the worldwide monetary system as a consequence of the invasion, we proceed to evaluate our operations within the nation,” it added.

The European Central Financial institution addressed the danger to the banking sector on Thursday, saying that Europe’s monetary system has sufficient liquidity and there have been restricted indicators of stress.

“Russia is vital when it comes to vitality markets, when it comes to commodity costs, however when it comes to the publicity of the monetary sector, of the European monetary sector, Russia isn’t very related.” stated Luis de Guindos, vp of the central financial institution.

“The strains and the tensions that now we have seen aren’t comparable in any respect to what occurred in the beginning of the pandemic,” he added.

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Trump’s Rambling Speeches Reinforce Question of Age

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With the passage of time, the 78-year-old former president’s speeches have grown darker, harsher, longer, angrier, less focused, more profane and increasingly fixated on the past, according to a review of his public appearances over the years.

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Israel pounds Lebanon in fierce wave of strikes

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Israel pounds Lebanon in fierce wave of strikes

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Israel continued to pound Lebanon with a fierce wave of air strikes overnight, as Israeli forces stepped up their air campaign against Hizbollah, hitting what they said were targets linked to the militant group.

The bombardment lit up Beirut’s skyline on Sunday, as powerful blasts rocked the city throughout the night. Targets included a building near the road to Beirut’s airport, where the strikes set off huge fires. Smoke was still seen rising from the area in the morning. 

The explosions began around midnight, after Israel’s military warned residents to evacuate neighbourhoods in Beirut’s southern suburbs, which Hizbollah dominates, including Haret Hreik and Choueifat. Another powerful blast was heard on Sunday morning.

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The more intense bombing followed a day of sporadic air strikes and the constant buzz of reconnaissance drones, both of which have become almost routine for residents of the capital. 

Israel’s military said it had struck weapons storage facilities and other infrastructure linked to Hizbollah in Beirut. It also said Hizbollah launched projectiles across the border, some of which were intercepted.

Hizbollah said it successfully struck a group of Israeli soldiers with a salvo of rockets. It is not possible to verify the battlefield claims on either side. 

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Israel has intensified its assault against Hizbollah over the past two weeks as it has shifted its focus from Gaza to the northern front. It has killed Hizbollah leader Hassan Nasrallah, launched air strikes across Lebanon and sent troops into Lebanon’s south for the first time in almost two decades.  

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More than 2,000 people have been killed in Lebanon in the conflict, the majority in the past two weeks, according to data from the Lebanese health ministry. More than 1.2mn people have also been displaced from their homes because of the fighting. 

This includes about 375,000 people who fled to Syria in recent days, some of whom made the journey on foot. Israel bombed one of the roads leading up to a major crossing point, saying it was targeting Hizbollah’s supply routes from Syria.

Foreigners have also continued to flee Lebanon, with multiple nations chartering planes to help repatriate their citizens in recent days. 

Israel on Saturday struck a Palestinian refugee camp in the northern city of Tripoli for the first time, targeting a Hamas commander. There were also indications that Israel was widening its offensive to include Hizbollah’s civil infrastructure. 

Lebanese authorities said Israeli bombardment had killed 50 health workers in the past four days, as Israeli fighter jets continued to attack medical facilities, mosques and other buildings it says are used by Hizbollah militants. 

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People standing on a street near damaged buildings following an Israeli air strike in the  Dahieh district in Beirut, Lebanon on October 6 2024
A street with damaged buildings following an Israeli air strike in the Dahieh district in Beirut © STR/EPA-EFE/Shutterstock

The WHO’s director-general warned that the capacity of Lebanon’s health system — already on the brink after five years of a dire economic crisis — was deteriorating and that the UN agency’s “medical supplies cannot be delivered due to the almost complete closure of Beirut’s airport”.

While Lebanon’s only airport remained open, most airlines have suspended flights in and out of the country because of the heavy bombardment in the nearby southern suburbs. 

Israel has issued multiple evacuation orders in recent days, warning people in towns and villages across the south to move north. It gave similar orders during its war against Hamas in Gaza ahead of big offensives. 

The escalation has pushed the Middle East closer to all-out war. The region is bracing for Prime Minister Benjamin Netanyahu’s response to an Iranian missile barrage fired at Israel on Tuesday. 

Tehran said the missile attack was in response to the assassination of Nasrallah and the killing of Hamas’s political leader Ismail Haniyeh in Tehran in July.

Israel also carried out further strikes in Gaza overnight, including bombing a mosque and a school in Deir al-Balah. Palestinian health officials said 26 people had been killed and “dozens” had been injured in the strikes. The Israeli military said it had targeted Hamas militants using the sites to direct operations against its forces.

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Israel also launched a new offensive in Jabalia in the north of the enclave, with warplanes carrying out a heavy bombardment of the area before it was encircled by ground forces. The military said it had launched the assault because militants had regrouped in the vicinity.

French President Emmanuel Macron on Saturday renewed his calls for a ceasefire in Gaza, saying weapons shipments to Israel for its campaign in the enclave should be suspended, and warning against further escalation in Lebanon.

“The Lebanese people must not in turn be sacrificed, Lebanon cannot become another Gaza,” he said in an interview with the France Inter radio station.

Netanyahu hit back, branding those supporting an arms embargo a “disgrace”. “Shame on them,” he said. “Israel will win with or without their support. But their shame will continue long after the war is won.”

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Tropical Storm Milton approaches Florida, likely to become a hurricane

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Tropical Storm Milton approaches Florida, likely to become a hurricane

Weather satellite image of the U.S. taken on Saturday afternoon ET shows stormy conditions brewing in the Gulf Coast.

NASA George C. Marshall Space Flight Center Earth Science Branch


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NASA George C. Marshall Space Flight Center Earth Science Branch

Less than two weeks after Hurricane Helene left a devastating and deadly trail across the Southeast, another storm is forecast to reach Florida next week — bringing threats of heavy rain, strong winds and flash flooding to the already-storm battered state.

The National Weather Service said Saturday that a tropical storm, named Milton, has formed in the Gulf of Mexico. The storm is heading toward the west coast of the Florida Peninsula. It is forecast to strengthen rapidly into a hurricane on Sunday night and become a major hurricane as it approaches the Florida coast, according to a 5 p.m. ET update from the NWS.

Forecasters said the storm is expected to bring potentially life-threatening storm conditions, including storm surge and strong winds, starting late Tuesday or Wednesday. Meanwhile, some parts of Florida will be drenched by heavy rainfall as soon as Sunday or Monday.

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Parts of South Florida were already experiencing heavy rainfall on Saturday. South Florida was expected to receive up to 7 inches of rain through Thursday. The NWS plans to issue a flood watch for parts of Palm Beach, Broward and Miami-Dade counties starting Sunday morning through Thursday morning.

Gov. Ron DeSantis on Saturday issued a state of emergency for 35 counties, including all of central Florida, in preparation for Milton’s arrival.

The governor’s order activates the Florida National Guard as needed and expedites debris cleanup from Hurricane Helene.

The prospect of another major storm comes as communities across the Southeast continue to uncover the full extent of Helene’s damage. Six states — Florida, Georgia, North Carolina, South Carolina, Tennessee and Virginia — were hit the hardest. Helene’s death toll has surpassed 200.

In Florida, at least 19 people have died as a result of the storm, according to USA Today.
Helene is considered one of the deadliest hurricanes to have hit the continental U.S. since Hurricane Katrina in 2005.

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